- WE'RE JUST RANDOM SPECKS OF DUST IN A TORNADO TO THE MARKETS .......
- CHARTISTS MUST PUT ALL BIAS ASIDE AND LET THE CHARTS DO THE TALKING OR WE'LL SEE ONLY WHAT WE WANT TO SEE
- This blog has a copy of all header posts that I publish anywhere, so that those interested in seeing what my thoughts are on the markets can find them easily.
- I will be answering questions and responding to comments, so feel free to respond to any posts and I will see your comment even if it is not on the most recent post.
- If you're interested in seeing any intraday charts I post, I do that on twitter, and my twitter handle is @shjackcharts.
- The charts in the posts are as large as I can practically make them. if you would like to look at one more closely, click on it, and the link will take you to a larger version at screencast. If you click on that again, you will get a full page version, and can use the resizing function on your browser to enlarge parts of interest further.

Wednesday, 16 November 2016

Backtesting the Triangle

It's been a boring day, but what has been happening is that the triangle / bull pennant that broke up yesterday is doing the usual triangle sequence of backtesting the break before the triangle thrust up. After the triangle thrust up ends of course it's then 90%+ probable that the thrust is fully retraced back to this backtest low.

So is the backtest finished? Maybe, though normally it would go a bit deeper. It may need a little lower before the triangle thrust begins. When the thrust does begin I'd be expecting to see at least a full retest of the all time high on SPX. ES Dec 60min chart:
One thing I'm watching on RUT, now that RUT has made a new all time high, is channel resistance on the channel that formed from the rising wedge on RUT from the February low. That is very much a possible target as ES/SPX makes the triangle thrust and that is currently in the 1322 area. RUT daily chart:
After the triangle thrust is retraced I'd be leaning towards a deeper retracement, though unless something significant changes, my lean is bullish overall for most of the rest of the year.

Stan's doing a free webinar after the close tomorrow at theartofchart.net on Trading Futures using Non-Traditional Elliot Wave. Well worth attending if you have an interest in TA and if you'd like to come you can register for that here.

No comments:

Post a comment